GNG Electronics Ltd — Q4 FY26

GNG Electronics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Bd_-rQg_q84 Published: 8 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the G&G Electronics Limited Q4 and FY26 earnings conference call. 0:10 10 seconds This call may contain forward-looking statements about the company that are based on the belief, opinions, and expectations of the company as on date 0:17 17 seconds of this call. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all 0:26 26 seconds participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:34 34 seconds Should you need assistance during this conference, please signal an operator by pressing start and then zero on your touchstone phone. Please note that this conference is being recorded. 0:45 45 seconds I now hand the conference over to Mr. 0:47 47 seconds Ailin Kurumani from Motil Oswald. Thank you and over to you. 0:53 53 seconds Thank you team. Good evening everyone on behalf of motil o financial services I welcome you to quarter fi 26 earnings 1:02 1 minute, 2 seconds call of G&V electronics limited joining us on the call today are Mr. Sat Kandel founder and managing director Mr. Ajit 1:10 1 minute, 10 seconds Pancholi director Mr. Rakit Jinwala CFO and Mr. Rohit Agarwal in this office. 1:17 1 minute, 17 seconds Now I hand out the call to Sergi for his opening remarks. Over to you sir. 1:34 1 minute, 34 seconds Good evening and thank you everyone. I welcome you to the Q4 and FI26 earnings call of G&G Electronics. 1:43 1 minute, 43 seconds This has been a remarkable year for our company. One in and one in which we have delivered our best ever our annual performance, expanded our footprint, 1:52 1 minute, 52 seconds deepened our customer relationships and substantially overd delivered on the guidance we set out at the beginning of the year. I I would like to begin by 2:01 2 minutes, 1 second thanking our shareholders, customers, channel partners, suppliers, and most importantly our 2,148 2:10 2 minutes, 10 seconds colleagues across geographies for their commitment and execution that made this performance possible. 2:16 2 minutes, 16 seconds Q4 FI26 has been a milestone quarter for us. Consolidated revenue grew 43% 2:23 2 minutes, 23 seconds year-onear to 651.7 crores and profit after tax nearly 2:28 2 minutes, 28 seconds tripled to 42.1 crores. AITA margin for the quarter expanded to 9.8% 8% and 2:36 2 minutes, 36 seconds improvement of nearly 307 basis points over Q4 FI25 while PT margin expanded to 2:42 2 minutes, 42 seconds 6.5% which is an improvement of over 323 basis points year on year 2:49 2 minutes, 49 seconds for the full year FY26 consolidated revenue stood at uh consolidated revenue stood at 1,891 2:59 2 minutes, 59 seconds crores representing a yearon-year growth of 32 34% a bit The margin during the 3:06 3 minutes, 6 seconds same period improved to 10.6% an expansion of 166 basis points over financial year 25 and profit after tax 3:14 3 minutes, 14 seconds grew to 91% grew by 91% to 132 crores which translates to pet margin expansion 3:21 3 minutes, 21 seconds by 209 basis points which is 43% increase from 4.9% to 7%. 3:30 3 minutes, 30 seconds We have by far exceeded both the original guidance we shared at the start of the year as well as the revised guidance we had communicated in our Q3 3:37 3 minutes, 37 seconds earnings call both on revenue growth and on profitability. 3:41 3 minutes, 41 seconds Our CFO RK will walk you through the detailed numbers shortly but one thing is very clear for the full year we have delivered healthy growth supported by a 3:50 3 minutes, 50 seconds strong demand across both domestic and international markets. Our revenue growth trajectory has remained strong and more importantly profitability has 3:58 3 minutes, 58 seconds scaled faster than revenue with improved realizations and stronger margins. 4:04 4 minutes, 4 seconds As we had indicated in our pre previous earning calls, we continue to see margin expansion driven by better procurement, tighter execution and strategic 4:13 4 minutes, 13 seconds inventory positioning which has allowed us to benefit from the prevailing industry dynamics. What is particularly particularly encouraging is not just the 4:22 4 minutes, 22 seconds growth we are delivering but the quality of that growth. Our business continues to remain asset light but working capital driven allowing allowing us to 4:31 4 minutes, 31 seconds scale efficiently without large fix investments while maintaining flexibility in a dynamic environment. 4:38 4 minutes, 38 seconds Our margin expansion is also driven by greater distribution reach we have built 4:45 4 minutes, 45 seconds across geographies that is across India and in inter international markets. 4:51 4 minutes, 51 seconds As we move closer to the user and as our products continue to gain gain greater acceptance supported by device that are 4:58 4 minutes, 58 seconds at par with new in terms of both performance and aesthetics backed by reliable and proven warranty 5:06 5 minutes, 6 seconds resulting in combined strength of product and service offering making our product and value proposition even more compelling. This in turn allows us to 5:14 5 minutes, 14 seconds price our products better which directly translates into a stronger margin profile. 5:21 5 minutes, 21 seconds We continue to expand our global footprint as of end as of the end of financial year 26. We now supply to 46 5:27 5 minutes, 27 seconds countries up from 38 countries at the start of the year. Our customerf facing reach has grown to 4,895 5:35 5 minutes, 35 seconds touch points across enterprises, institutions, distributors and channel partners compared with 4,154 5:44 5 minutes, 44 seconds at the beginning of the year. Our supplier base has expanded meaningfully as well, providing us with deeper, more diversified sourcing across geographies. 5:55 5 minutes, 55 seconds To support this growth, we have continued to strengthen our team. Total employee strength has now crossed 2,100 6:02 6 minutes, 2 seconds with substantial addition to our engineering, sales, and procurement functions through the year. This investment in talent is what has enabled 6:10 6 minutes, 10 seconds us to scale our refurbishment capacity, deepen customer engagement and expand our distribution reach without without compromise on quality. 6:19 6 minutes, 19 seconds We have also strengthened our marketing team which is now actively driving multiple campaigns and programs aimed at expanding and amplifying the electronics 6:27 6 minutes, 27 seconds bazar proposition to a wider global audience. Let me share a few specific initiatives. 6:34 6 minutes, 34 seconds First, on the consumerf facing financing front, we are launching a flagship affordability program, making a premium refurbished laptop available to end 6:42 6 minutes, 42 seconds customers through our dealers at as low as 1,000 per month through structured EMI partnerships with leading consumer 6:49 6 minutes, 49 seconds finance players in India and similar tires being explored in our international markets. This program we believe will meaningfully expand the 6:58 6 minutes, 58 seconds universe of customers we can reach particularly first-time computer buyers, students and small businesses. 7:05 7 minutes, 5 seconds Second, we have continued to invest in deepening our channel engagement through regular onground channel partner meets across major cities including recent 7:14 7 minutes, 14 seconds meets in Dhane and Aab which we will continue to scale through financial year 27 to strengthen our distributor and your ecosystem. 7:23 7 minutes, 23 seconds And third, we have rolled out targeted performance dig digital marketing and influencer influencerled campaigns 7:31 7 minutes, 31 seconds partnering with renowned tech in influencers such as Raji Makni to build category awareness and elevate the electronics with our brand among 7:39 7 minutes, 39 seconds consumers and enterprise decision makers. Together these initiatives are translating into greater customer reach, 7:46 7 minutes, 46 seconds stronger brand recognition and ultimately healthier sales and margins. 7:51 7 minutes, 51 seconds Also, our team continue to participate in international trade shows across US and Europe throughout the year to nurture and enhance our business partnerships. 8:01 8 minutes, 1 second On the distribution side, as covered in our recent press release, we have formulized strategic partnerships with India's leading technology distributors. 8:09 8 minutes, 9 seconds While the full impact of these partnerships is yet to be seen, the early signs are encouraging and we look forward to scaling these relationships meaningfully over the coming years. 8:19 8 minutes, 19 seconds Let me now turn to the broader industry because the developments over the last 6 months have been truly defining for our 8:26 8 minutes, 26 seconds segment. As I have been highlighting since our protocol, the global PC industry is undergoing a structural shift driven by AI le memory diversion. 8:36 8 minutes, 36 seconds Since then the situation has only intensified and importantly it is no longer a memory only story. storage, processors and other key components are now seeing comparable price escalations. 8:48 8 minutes, 48 seconds More importantly, there is supply concern of brand new computers on account of shortage of critical components. 8:56 8 minutes, 56 seconds Let me share some spec specific data points to illustrate the magnitude of this shift. As I had referenced in our Q 9:03 9 minutes, 3 seconds learning call, an 8GB DDR5 memory module was priced at $23.35 on October 1st, 2025, rising sharply to 9:13 9 minutes, 13 seconds $86.61 by January 1st, 2026. As of April 1st, 2026, the same model is priced at 9:22 9 minutes, 22 seconds approximately $120, more than five times its level just 6 months ago. The 16 GB DDR5 model has followed a similar 9:30 9 minutes, 30 seconds trajectory from $54.85 on October 1st to $189.99 on January 1st and approximately $210 as 9:40 9 minutes, 40 seconds of April 1st, close to four times in 6 months. 9:46 9 minutes, 46 seconds More importantly, again, as I had also mentioned in Q3, this is no longer just a memory phenomena. 9:53 9 minutes, 53 seconds The same pattern is now clearly visible across other key components. A one TB SSD, which was priced at around $70 on 10:00 10 minutes October 1st, 2025, rose to $180 by January 1st, 2026, and is now approximately $249 as of April 1st, a 10:10 10 minutes, 10 seconds 3.5% time increase in 6 months. A typical high-end processor has risen from $165 on October 1st to 10:18 10 minutes, 18 seconds approximately $240 as of April 1st, up roughly 45% with CPU lead times now stretching in many cases to as much as 6 months. 10:30 10 minutes, 30 seconds The impact of these component price escalations is now flowing directly into price of new laptops. To give you a sense of the magnitude, a typical entry- 10:38 10 minutes, 38 seconds level laptop with 8 GB RAM and 512 GB SSD which was selling in China in India for around 25,500 10:46 10 minutes, 46 seconds as on 1st December 2025 rose to approximately 32,500 by January 1st and is selling today at rose to 40,000. 10:57 10 minutes, 57 seconds An increase which is an increase of nearly 57% in just 6 months. The story is similar in international market. A 11:04 11 minutes, 4 seconds comparable laptop which was priced at around $315 on October 1st rose to $375 by January and selling today at 11:12 11 minutes, 12 seconds approximately $440. This is an increase of around 40% in 6 months. This is the 11:19 11 minutes, 19 seconds new real reality of the new this of the new PC market and it makes the value proposition of credible branded refurbished PCs supplied by electronic 11:27 11 minutes, 27 seconds bazar stronger than ever before. Let me mention in good measure that illustrations that have been given are of entry-level brand new computers while 11:36 11 minutes, 36 seconds we deal in high-end refurbished computers and end user can now buy a premium high-end refurbish refurbished computer by us at a better value than an entry-level brand new computers. 11:48 11 minutes, 48 seconds The March 2026 IDC update conveys this opport opportunity more clearly. 11:54 11 minutes, 54 seconds According to IDC, global new PC shipments stood at approximately 285 million units in 2025. IDC has further 12:02 12 minutes, 2 seconds cut its 2026 PC shipment forecast to a decline of around 11%, a further decline from 8.9% that were projected earlier. 12:10 12 minutes, 10 seconds An absolute number, this implies a reduction of roughly 32 million units in 2026 alone. But the real picture is even 12:19 12 minutes, 19 seconds more stifling. Under normal circumstances, 2026 was expected to be a growth year for PCs because of the area 12:26 12 minutes, 26 seconds PC's adoption weight. So when you compare the 11% expected fall against the roughly 10% growth that the market would otherwise have delivered, you are 12:34 12 minutes, 34 seconds looking at a cumulative gra gap of approximately 55 to 60 million units of computing demand that the new PC market simply will not be able to serve in 2026. 12:44 12 minutes, 44 seconds I repeat this is a gap of 55 to 60 million units of computing demand that brand new computers will not be able to fulfill. 12:53 12 minutes, 53 seconds The unmet demand is logically logically finding its way to the refurbished segment and we continue to fully harness this opportunity. The end demand of 13:02 13 minutes, 2 seconds computing for computing isn't disappearing. As I said in our Q2 admins call, by the end of the year, AI would change the landscape of how we do 13:11 13 minutes, 11 seconds things. And that is exactly what we are seeing playing out today. And we are just scratching the surface of what AI is capable of. A AI is making computing 13:20 13 minutes, 20 seconds more, not less, central to how enterprises, governments, students, and consumers operate. What is changing is 13:27 13 minutes, 27 seconds where that computing demand is being met. and and in this shape refer species particularly particular particularly those backed by light quality and 13:37 13 minutes, 37 seconds credible warranty represent the most viable and economical alternative. 13:42 13 minutes, 42 seconds Thank you. I would now like to hand over to our CFO Rakit. 13:49 13 minutes, 49 seconds Thank you Sh and good evening everyone. 13:52 13 minutes, 52 seconds I am happy to share that we have closed FI26 with the strongest ever quarterly and annual performance capping a year of 13:59 13 minutes, 59 seconds consistent execution discipline growth and a meaningful expansion across the board. Let me first walk you through the 14:07 14 minutes, 7 seconds Q4 numbers. During the quarter, consolidated revenue grew 43% yearonear 14:13 14 minutes, 13 seconds to rupees 651.7 cr driven by sustained demand momentum across both our domestic 14:21 14 minutes, 21 seconds and international markets particularly the Middle East, the United States and Europe. 14:27 14 minutes, 27 seconds Gross profit for the quarter stood at rupees 125.3 cr with gross margin expanding to 19.2% 2% from 15.1% 14:37 14 minutes, 37 seconds in Q4 FI25 sharp improvement of 414 basis points reflecting better procurement sharper 14:45 14 minutes, 45 seconds inventory positioning and improved realizations a beta for Q4 stood at rupees 64 cr with 14:52 14 minutes, 52 seconds a beta margin at 9.8% 8% versus 76 75% in the Q4 FY25 14:59 14 minutes, 59 seconds an improvement of 37 basis points year on year profit after tax for the quarter 15:06 15 minutes, 6 seconds nearly tripled yearon year 2 rupees 42.1 cr with pet margin expanding to 6.5%. 15:14 15 minutes, 14 seconds Compared to 3.2% 2% in Q5 FI25 an improvement of 332 basis points. 15:21 15 minutes, 21 seconds Coming to the full year FY26 consolidated revenue grew 34% yearonear 15:27 15 minutes, 27 seconds to rupees 1,891.1 cr. Gross profit 15:34 15 minutes, 34 seconds grew to rups 380.9 cr with gross margin expanding by 225 basis points to 20.1%. 15:44 15 minutes, 44 seconds Abita grew to rupees 200.5 cr with AITA margin improving by 166 basis points to 15:52 15 minutes, 52 seconds 10.6% 6% versus 8.9% in FI25. 15:58 15 minutes, 58 seconds Profit after tax nearly doubled to rupees 132 cr of 91% yearon year with that margin 16:06 16 minutes, 6 seconds expanding to 209 basis points to 7% from up from 4.9% FY25. 16:16 16 minutes, 16 seconds We have delivered massive revenue growth in India with consumption revenue going up from 16:23 16 minutes, 23 seconds 345 cr to 622 cr in FY26 increasing by 80%. 16:30 16 minutes, 30 seconds Overall FY26 has gained a year of strong allound performance with significant revenue growth, meaningful margin 16:37 16 minutes, 37 seconds expansion, robust capital efficiency and a strong balance sheet. We enter FY27 with healthy momentum, 16:46 16 minutes, 46 seconds strengthen the team, expanded distribution and structural industry tin that SH has spoken about. Thank you. 16:58 16 minutes, 58 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 17:08 17 minutes, 8 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 17:17 17 minutes, 17 seconds and gentlemen, we will wait for a moment while the question queue assembles. 17:28 17 minutes, 28 seconds We'll take a first question from the line of Chandesh Malpani from Nishai. Please go ahead. Hello. 17:36 17 minutes, 36 seconds Am I audible? Yes. Go ahead. 17:38 17 minutes, 38 seconds Yes. And yeah. Yeah. Thank you so much sir for the opportunity and congratulations on this great set of numbers. So my first 17:46 17 minutes, 46 seconds question is basically on the you know volume numbers for this quarter and the average selling price. 17:54 17 minutes, 54 seconds Yeah sure. Thanks Nesh. So uh let me give you first the volume number for the full year. uh was the volume volume 18:02 18 minutes, 2 seconds number for the full year uh is about 7 lakh 27,000 odd in comparison to 5 lakh 18:08 18 minutes, 8 seconds 90,000 odd. Okay. And broadly this is uh again the breakup of this is uh almost 18:15 18 minutes, 15 seconds 81% in laptops and 19% in other than laptops. Uh furthermore to your question 18:22 18 minutes, 22 seconds in terms of the last quarter the uh uh the breakup of uh laptops is about uh uh 18:30 18 minutes, 30 seconds the breakup is about 175,000 176,000 laptops and 65,000 uh others. So 18:38 18 minutes, 38 seconds that basically brings the quarterly number to about 2 41,000. Coming to the 18:44 18 minutes, 44 seconds uh uh ASPs for the quarters just ended for laptops the ASPs is about 30,000 uh 18:51 18 minutes, 51 seconds 30,000 rupees and for others it is about $19,000. On a blended basis this number translates to 27,000. If I were to 19:00 19 minutes compare this on a full year basis my ASP uh on a blended basis the ASP is about 19:07 19 minutes, 7 seconds 26,000 rupees. uh and uh furthermore for laptops it is about 28,800 and other it is about $18,300 rupees. 19:18 19 minutes, 18 seconds Okay. But it's s and uh basically if I if I compare with the Q3 numbers where you know where we are also keeping 19:27 19 minutes, 27 seconds elevated inventory levels because of you know the reasons that you mentioned in your opening remarks. So why I mean the average ASP on a branded basis have gone 19:35 19 minutes, 35 seconds up by,000 rupees but you know the gross margins have not uh uh you know directionally uh followed that. So what 19:43 19 minutes, 43 seconds could that be what could be the possible reasons here? 19:48 19 minutes, 48 seconds So if you look at uh see basically what happens is uh Q4 at times we also and we we've had this earlier as well there's 19:56 19 minutes, 56 seconds always a push of volume over margins. So at many times we need to push that element as well. That having said if you 20:04 20 minutes, 4 seconds look at our quarterly uh Q3 visi Q4 the ASPs have increased by almost from 20:10 20 minutes, 10 seconds 29,000 for laptop to 30,000 rupee and on a branded basis from 26,200 to so the reli 20:19 20 minutes, 19 seconds but also be mindful of the fact tag this quarter as mentioned in his opening remarks uh has been really 20:27 20 minutes, 27 seconds transformational as we are building capacities building getting ourselves prepared head for uh uh the the the 20:34 20 minutes, 34 seconds future as as we roll out roll over to the next year. So there are certain investments that whether it's in terms 20:41 20 minutes, 41 seconds of people or processes etc that have uh that get reflected in the numbers as well. So you should not necessarily 20:50 20 minutes, 50 seconds if you look at uh uh the corresponding quarter right the delta is significant in terms of uh margins as well. 21:00 21 minutes Yeah. So but you you would have to weigh weigh in the overall uh uh dynamics uh on the final outcome. 21:09 21 minutes, 9 seconds Okay. No sir the uh you know what uh what I want to bring out is here because we are you know again back to our debt 21:16 21 minutes, 16 seconds levels of preipo I mean 400 odd crores of you know borrowings is again at this March balance sheet. So again our 21:25 21 minutes, 25 seconds strategy of keeping the higher inventory because as this year end we are about 700 odds of inventory. So we are uh you 21:33 21 minutes, 33 seconds know confident of that uh strategy right? 21:37 21 minutes, 37 seconds Yes, we are confident of that strategy and just for the benefit of the wider benefit of uh people on the call, I'll just address the debt position levels as 21:46 21 minutes, 46 seconds well relative to what guidance we had given at the end of the last quarter. 21:50 21 minutes, 50 seconds And I'll also share this in comparison to the March 25 numbers. So in terms of March 25, the uh net debt was about 383 21:59 21 minutes, 59 seconds odd cr. This included a shareholder loan of about 60 odd crores. Okay. If you look at the same number at the end of 22:06 22 minutes, 6 seconds March 26, this number is the net debt is about 300 odd gross and this does not include any uh special loan has also 22:13 22 minutes, 13 seconds been paid off. Now it will be pertinent to pertinent to note that the same uh position as of 31st December the net 22:20 22 minutes, 20 seconds debt number was 466 crores that has gone down to 300 odd crores. Right? So uh as 22:27 22 minutes, 27 seconds against uh so as rel relative to last year which was 383 crores it is now 300 odd crores but yes you are right we 22:36 22 minutes, 36 seconds continue to maintain strategic positions on our equity uh and yes the uh participation of our shareholders in terms of the IPO as well as the 22:44 22 minutes, 44 seconds profitability has given us that additional leverage to take that strategic position in terms of how uh we see the opportunity and how we can use 22:51 22 minutes, 51 seconds up the opportunity uh in terms of uh our inventory levels and the tailwind events actually are helping us uh uh to take that uh strategic position. 23:02 23 minutes, 2 seconds Okay, thank you so much. This this was helpful. Thank you. Thank you. Next question. 23:12 23 minutes, 12 seconds S you would like to add something. 23:15 23 minutes, 15 seconds uh due to the price increases as I mentioned in processors and now in SSD and uh um memories earlier in memory now 23:24 23 minutes, 24 seconds processor and SSDs the price of brand new computers are increasing like anything and it we are in a situation where the prices will keep on 23:32 23 minutes, 32 seconds increasing to 27N there will be a we can call it a stable price increase and it makes it 23:39 23 minutes, 39 seconds imperative for us to keep elevated levels of inventory for us to be selling them at a better price and maintaining our margins even increasing the margins. 23:49 23 minutes, 49 seconds So we have to buy ahead of the price increase curve and the need of the hour is to keep high levels of advantage. It makes all the more commercial sense for us. 24:00 24 minutes Thank you. Next question is from the line of Sil Jen from Nirmal Bank Securities. Please go ahead. 24:07 24 minutes, 7 seconds Yeah, thank you very much for the uh opportunity and congratulation on good number sir. Uh my question again relate 24:15 24 minutes, 15 seconds to uh inventory which you are maintaining high. Uh even uh after having a peak quarter of sales of almost 24:24 24 minutes, 24 seconds around uh uh 600 cr plus 650 cr plus you still have inventory very high inventory 24:32 24 minutes, 32 seconds of over over 700 crores. So uh is this likely to continue uh as you said uh 24:39 24 minutes, 39 seconds toward till the end and you will keep on keeping the inventory of almost around uh uh 4 and a half five month. 24:48 24 minutes, 48 seconds So I would uh thanks thanks for your question. Let me address this in a couple of ways. Okay. So if you look at our inventory levels at the end of last 24:56 24 minutes, 56 seconds year that number was about 490 odd crores. If you look at the same number at the end of 31st December which is end 25:03 25 minutes, 3 seconds of Q3 that number of 683 odds uh and the same number is 743 crores. 25:10 25 minutes, 10 seconds Now right now as I think it's very important for you to uh uh relay upon 25:17 25 minutes, 17 seconds the uh the the market dynamics as to how we are seeing the market dynamics playing out which is in terms of uh 25:24 25 minutes, 24 seconds component prices, memory prices and so on and so forth. So that uh helps uh strategically this inventory level uh 25:32 25 minutes, 32 seconds strategy helps in the overall u uh strategy going forward because the way we see this is uh uh this actually adds 25:41 25 minutes, 41 seconds substantially to our uh capability to uh add on the profitability. So inventory levels at about 700 40 odd crores as of 25:50 25 minutes, 50 seconds uh uh uh March end. uh Kyle you may say that is this number is almost 3 4 months 25:56 25 minutes, 56 seconds of uh u u uh quantum but we see this as the real opportunity and we see this uh 26:03 26 minutes, 3 seconds to really add on to our profitability going forward. So this is a strategic uh uh thought. I think we've uh you've seen 26:12 26 minutes, 12 seconds the enhancement in and uh inventory levels at the end of last quarter and this quarter as well and we've given the rational even then as to why we have 26:20 26 minutes, 20 seconds strategically brought up this position and all the data points mentioned by Sheri earlier in terms of how 26:28 26 minutes, 28 seconds entry- level uh machines have moved in terms of pricing how the component pricing has has moved and that really 26:37 26 minutes, 37 seconds gives us the confidence that these inventory levels uh will uh will be fruitful from uh an overall perspective for a business. 26:45 26 minutes, 45 seconds Uh apart from this even the dattors level which was at around uh 6 uh in 26:52 26 minutes, 52 seconds last year uh has moved up to over one month mean 1.3 per month. So what is the reason? 27:02 27 minutes, 2 seconds Yeah. So at the end of December the datas were at average receivables were uh at about 285 crores that's gone down 27:08 27 minutes, 8 seconds to 206 cr at the end of March. Okay. And this is again as as we've emphasized uh 27:15 27 minutes, 15 seconds this is uh this this this business if you understand the key mode of this business or the key dynamics of this 27:23 27 minutes, 23 seconds business this is a uh uh this will be uh uh asset light but working capital uh 27:30 27 minutes, 30 seconds consuming right and uh furthermore to say uh as we have added more partners in our 27:38 27 minutes, 38 seconds distribution strategy we will need to support our partner even for for new uh machines when the partner sells new machine they are given credit by the 27:46 27 minutes, 46 seconds OEMs and that credit is ranging from about 30 to 45 days and our our level of credit is no different than than uh 27:54 27 minutes, 54 seconds there so we have to be competitive and uh place the proposition such that the distribution channel also equally uh is 28:04 28 minutes, 4 seconds not does not see this as a different mechanism and they promote our product also with the same rigor 28:11 28 minutes, 11 seconds Yeah. So the only if I may add if I may add that we have gained a level of institutional trust and uh now there is 28:20 28 minutes, 20 seconds a successful val validation from global distributors who previously handled only new equipments. So in this segment the credit will be very very important for 28:28 28 minutes, 28 seconds us to be able to push an entire distribution channel for refurbished products to be sold in the segment where here to new new computers were being 28:36 28 minutes, 36 seconds sold as refurbished computers are becoming now a real alternative refurbished by us with one year to threeear warranty equal to new features 28:45 28 minutes, 45 seconds and uh equal to new feature with credible warranty is becoming an alternative. So we have to uh funnel 28:52 28 minutes, 52 seconds this channel for us to reach the end customer and credit is paramount for that to happen. So uh the conclusion is 29:01 29 minutes, 1 second that uh the uh working capital cycle which is uh elevated in the current year will continue to remain elevated for at least near term. 29:12 29 minutes, 12 seconds Yes, that's correct. The reason being uh that we are in a situation of extreme shortages because of hyperscalers and shortage of SSD, RAM and processors. 29:23 29 minutes, 23 seconds Even the I may add the brand new computer shipments are reducing because because of supply crunch. So makes more and the prices are increasing. So we 29:31 29 minutes, 31 seconds have to take strategic stock positioning also to sell material to the global tech distributors for us to reach right customer, right business customer. 29:40 29 minutes, 40 seconds And sir if you can share uh guidance for next year if possible. 29:47 29 minutes, 47 seconds Sir in next year guidance uh we can give at around 25% revenue growth and on pack level growth around.5%. 29:58 29 minutes, 58 seconds Uh pack level growth and we should look at this on the uh sorry uh the pack level growth uh an increment of at least 50 basis point from the current level. 30:08 30 minutes, 8 seconds So this is on the back of almost 200 basis points. Yeah. Son expansion at least 50 basis point on the back of uh the substantial goal that we have available this year. 30:19 30 minutes, 19 seconds Okay. Great. Thank you very much. I'll come back in the Thank you. Next question is from the 30:26 30 minutes, 26 seconds line of Nishant Sharma from Noama Wealth PCG Research. Please go ahead. 30:32 30 minutes, 32 seconds Thank you for the opportunity and uh um congratulation for great set of numbers. 30:38 30 minutes, 38 seconds Uh my first question is around on the margin side. Uh we have seen a sequential decline on the margin. Uh partly you alluded that uh this is 30:46 30 minutes, 46 seconds because of the investment on capacity builder people and processes. Uh just wanted to understand what kind of impact 30:53 30 minutes, 53 seconds could be because of these uh uh parameters on the margin on a sequential basis. 31:03 31 minutes, 3 seconds Hello. Hello. Yeah. So, yeah. Yeah. 31:08 31 minutes, 8 seconds Yeah. So, on so the way we should look at it as the guidance strategy has given. So, broadly we are seeing that 31:15 31 minutes, 15 seconds there will be an improvement uh you should look at it from a trajectory perspective there will be an improvement quarter over quarter going forward. 31:23 31 minutes, 23 seconds Typically you have seen that at least in the last Q4 of uh uh uh this year Q4 of 31:31 31 minutes, 31 seconds the previous year and uh earlier periods as well we've always seen the Q4 uh margin to be a bit subdued because it 31:40 31 minutes, 40 seconds runs on the on the back of substantial uh volume growth right because that is the period as we had I alluded earlier 31:48 31 minutes, 48 seconds as well year end period uh uh strategic purchases or uh large bulk purchases 31:54 31 minutes, 54 seconds etc. and hence we have to give that uh push to the uh overall ecosystem. So uh in terms of quarter over quarter we see 32:04 32 minutes, 4 seconds uh you should look at uh the trend from a as how we have grown historically we'll add up uh on on top of that uh over quarters. 32:12 32 minutes, 12 seconds Okay. And just want to understand uh basically uh even in previous uh quarters we have broadly very confident 32:19 32 minutes, 19 seconds in achieving 25% uh revenue growth trajectory for couple next 32:26 32 minutes, 26 seconds [clears throat] 32:26 32 minutes, 26 seconds sorry your handset more. Yeah. 32:34 32 minutes, 34 seconds Am I audible now? Sorry. Uh so you're able to hear him? Yes. Am I audible now? 32:42 32 minutes, 42 seconds Yes, you are. 32:43 32 minutes, 43 seconds Yeah. So, uh uh I was uh highlighting uh uh asking that uh historically or last couple of quarters we have been very 32:51 32 minutes, 51 seconds confident in achieving 25% kind of a revenue growth uh going forward uh for next couple of years given the huge uh industry tailwind uh that we are seeing. 33:02 33 minutes, 2 seconds Uh apart from that we have also added new distributors uh uh in our city. So don't you think that 25% seems to be a 33:11 33 minutes, 11 seconds uh on a conservative side and given the new distributors coming in uh we can easily outpace this number? 33:19 33 minutes, 19 seconds Nishan you're right we like to give conservative estimates. 33:23 33 minutes, 23 seconds Uh okay and a last question on around uh distributor side. Uh when we have added new distributor uh what kind of 33:31 33 minutes, 31 seconds currently they are holding the inventory of refurbished laptop at their uh uh distributor K distribution K or 33:40 33 minutes, 40 seconds warehouses and visav what is their uh thought process in terms of taking it as a overall inventory at their levels. 33:50 33 minutes, 50 seconds The suds are very very excited on this business. Their team, their channel partners are accepting this proposition in a very very excited way, right way. 34:01 34 minutes, 1 second And in terms of inventory, what they are keeping is between 30 to 45 days of inventory that they usually keep. It's very much required for doing the right 34:10 34 minutes, 10 seconds distribution the right way and it is in line with the brand new inventories that they usually keep. In fact, maybe lower 34:16 34 minutes, 16 seconds than that. me broadly my question was around in terms of percentage of shares. 34:22 34 minutes, 22 seconds So suppose they are keeping 100 uh new laptops. So what is the kind of number that they are keeping it for uh 34:29 34 minutes, 29 seconds refurbished laptop and uh going forward that is that is difficult for me to answer the question what they believe 34:36 34 minutes, 36 seconds but it will be a small percentage but definitely we intend to grow with them and our our proportion their overall 34:44 34 minutes, 44 seconds pity our time and their overall city will increase and any new distributor partnership uh uh that is in lineup 34:52 34 minutes, 52 seconds yeah we are in talks with various uh distrib to different partners around the world and as and when the meditizes we will give the right uh press release for the same. 35:02 35 minutes, 2 seconds Sure I'll sure I'll follow you the part the discussions are in advanced stages in Europe and in the United States. 35:10 35 minutes, 10 seconds Okay, that's great sir. That's great. Uh once again, many congratulations and I follow you back in. Thank you. 35:16 35 minutes, 16 seconds Thank you. Next question is from the line of Asta Jen from PK Advisor. Please go ahead. 35:23 35 minutes, 23 seconds Hello. Thank you for the opportunity sir. Uh my question is with respect to other expenses. So for this year it has 35:30 35 minutes, 30 seconds increased by 40%. Um on YI basis. So can you tell us that what is the reason for increase in other expenses? 35:41 35 minutes, 41 seconds Uh am I audible? Yes. Yes. 35:45 35 minutes, 45 seconds Yes. Yes. So uh the other expenses substantially uh uh are on account of break marketing and insurance. Right. If 35:54 35 minutes, 54 seconds you look at uh uh while you say that yes it has increased by almost 40% but by 37 also one should also look at this number 36:01 36 minutes, 1 second on the back of the revenue uh line as well. uh is there an increment of about five seven to 10 basis points more than what we had anticipated? Possibly yes. 36:12 36 minutes, 12 seconds Uh especially in the last uh quarter on account of the increased state rate on account of the uh situation that we are 36:19 36 minutes, 19 seconds all dealing uh with from a uh Asia Asia perspective but it is pretty much in 36:27 36 minutes, 27 seconds line. I don't think it is out of out of all. 36:30 36 minutes, 30 seconds Understood. So my second question is with respect to revenue breakup. Uh I wanted to know can you give us revenue breakup by geography? 36:41 36 minutes, 41 seconds Yes. Uh so the revenue breakup by one second I just agree to it. So for the 36:47 36 minutes, 47 seconds full year uh India uh revenue is about 43 odd%. Uh UAE is at about 12%. US is 36:55 36 minutes, 55 seconds uh 21% Europe about uh 20%. and the rest of the world is about 14%. So, uh in a 37:03 37 minutes, 3 seconds sense, US and Europe put together is just at about 41%, India 33%. 37:10 37 minutes, 10 seconds Sorry, sir. Thank you. 37:13 37 minutes, 13 seconds Thank you. Next question is from the line of Paris Shira from Purple One Vortex Venture LLP. Please go ahead. 37:21 37 minutes, 21 seconds Yeah, thank you sir for this opportunity and congratulations for the wonderful set of video. Uh sir just two s Iran war 37:31 37 minutes, 31 seconds was there any impact on our operation at char or either sales etc you know in terms of the supply chain or logistics. 37:42 37 minutes, 42 seconds Yeah uh thanks for this question. I was expecting it. Yeah, because I was really worried about this actually. 37:52 37 minutes, 52 seconds But no, no, but let me assure you that uh the situation is it is quite normal. 37:57 37 minutes, 57 seconds The government of UAE has handled situation pretty well. Very high rate of interceptions and our facilities have 38:04 38 minutes, 4 seconds been up and running every every single day. Our shipments happen by air. So that are also uninterrupted. The blockage that you get in state of hormones, we are not impacted by that. 38:15 38 minutes, 15 seconds And the pretty much the life in UAE is as normal as it could be given the circumstances. It is not ideal. We we I 38:24 38 minutes, 24 seconds am speaking to you from crumbs as as we speak. So you can imagine situation is pretty normal. 38:29 38 minutes, 29 seconds Yes. But so concerned our facilities are working and shipments are happening. Yeah. 38:36 38 minutes, 36 seconds Understood. So basically you know the shipments by air has been uh normally as it is since the time it has been 38:43 38 minutes, 43 seconds operating. Yes or okay or was it normal to the container? Yeah. 38:49 38 minutes, 49 seconds No, no, no. We are making the shipment by air. So that is uh apart from minor dealers 38:56 38 minutes, 56 seconds is okay. And we also let's understand we keep very good inventory position in Europe and America too. Right. 39:03 39 minutes, 3 seconds We have inventory only in in uh Middle East. So what we we shift to our US office bulk of the inventory we keep 39:11 39 minutes, 11 seconds it there and from there it is sold to American and European markets also. But but but procuring your supply parts etc 39:18 39 minutes, 18 seconds was that a challenge or that has also been managed I mean you can obviously operation we have not seen the operation 39:27 39 minutes, 27 seconds challenges on account of this this war there is a ceasefire in place for last 30 days some minor skirmishes did happen yesterday 39:35 39 minutes, 35 seconds but apart from that situation is pretty normal no operations challenges to us at all whatsoever oh that's nice to hear and secondly sir 39:44 39 minutes, 44 seconds I mean I uh heard about this you know price rises in the new laptops and the component parts etc. I mean just I was 39:51 39 minutes, 51 seconds offended and you know I may be a little bit underrating it but in terms of margin expansion for ourselves the benefit out of this huge win you know 40:00 40 minutes the price rise so far for us has been quite nominal. So is there a scope for a significant margin expansion now for 40:08 40 minutes, 8 seconds this year or this is where you know things stabilize in terms of margins now? 40:14 40 minutes, 14 seconds No see we have given you guidance of.5% in terms of P expansion. This will be obviously on the back of margin 40:21 40 minutes, 21 seconds expansion and we are also making more inroads and trying to establish ourselves as a structural giant in 40:30 40 minutes, 30 seconds circular economy and the idea is to gain more acceptance across ideal audience or business 40:38 40 minutes, 38 seconds customers in overall market but the margin expansion is also part of our strategy. So we'll find the right 40:44 40 minutes, 44 seconds balance and uh the margin expansion definitely will also uh be there in 40:51 40 minutes, 51 seconds apart from uh topline expansion right this last in terms of I mean inventories have understood to some extent only one 41:00 41 minutes thing you know I mean we have strategically positioned you know high inventory given the situation that is preventing currently but at at some 41:08 41 minutes, 8 seconds point of time you know and we'll also be rising on the debt curve etc and if there is you know cycle disruption you know be some black event is there an 41:17 41 minutes, 17 seconds inventory sort of risk that we are sitting on or you can be able to manage it. 41:24 41 minutes, 24 seconds No not quite because if you have kept a strategic position of inventory they are bought at comfortable prices. We have not bought them at high prices. Let me 41:33 41 minutes, 33 seconds assure you that and right uh yeah so we are in a situation where we the we have bought inventory at lower 41:41 41 minutes, 41 seconds prices sir fair enough okay thank you so much thank you next question is from the line 41:50 41 minutes, 50 seconds of borisha from sequent investments please go ahead yeah thank you for the opportunity sir 41:57 41 minutes, 57 seconds so my question is again on the margin so you mentioned our top line will grow at roughly around 25 or more than 25%. So 42:04 42 minutes, 4 seconds question uh I want to understand is what kind of margin we are looking because I uh because I think uh the cost will not 42:14 42 minutes, 14 seconds move parallel with the top line right employee cost and other expense will remain low. So are we looking at like 11 42:22 42 minutes, 22 seconds 12% IIDA margin for this year? 42:26 42 minutes, 26 seconds Yes. So if you look at Yeah. So if you look at last year our visit margin was shared below 9%. As we speak we have 42:34 42 minutes, 34 seconds grown this to about 10.6% for the full year. The guidance that uh we have given 42:40 42 minutes, 40 seconds is a uh enhancement of at least 50 basis points at the act level. So it should be 42:48 42 minutes, 48 seconds it will be fair to assume that it will be at the level it will be achieved higher. So from 10.6 six will it be 42:55 42 minutes, 55 seconds about 11.5 or thereabouts in order to achieve the guidance we had to uh deliver that number 43:04 43 minutes, 4 seconds sorry sir you mentioned from 10.5 10.5 to you were not audible in between sorry 43:10 43 minutes, 10 seconds 10 11 11 10.6 6 to 11.5 okay or thereabouts in order to in order to 43:17 43 minutes, 17 seconds for us to deliver at least a 50% 50 basis point expansion uh understood and so my second question 43:25 43 minutes, 25 seconds is on the finance cost uh it has gone up from I think 9 crores to 14 and a half crores quarter and quarter which is 43:33 43 minutes, 33 seconds largely because of the working capital but you mentioned the prices of the rams and inventory it is eventually gradually 43:41 43 minutes, 41 seconds going to go up in this year also by end of Q4. So are we expecting this run rate 43:48 43 minutes, 48 seconds 14 15 K kind of quarterly run rate to go up or is it going to sustain here? 43:55 43 minutes, 55 seconds It's likely to sustain the way we should look at this is likely to sustain as I guided at the end of uh last quarter we 44:03 44 minutes, 3 seconds had indicated a position of about 450 or 466 at the end of December. uh we up to that level we are pretty comfortable. 44:13 44 minutes, 13 seconds That having said as of uh as of March we've got that number down to about 300. 44:18 44 minutes, 18 seconds So it should be in that trajectory is what uh we expect going forward. 44:25 44 minutes, 25 seconds Understood. Understood. Okay. Thank you sir. 44:29 44 minutes, 29 seconds Thank you. We'll take our next question from the line of Raj Sarah from Finest. Please go ahead. 44:38 44 minutes, 38 seconds Yeah. So congratulations from the great chair of forward I missed your initial commentary uh sorry for sorry for that I 44:45 44 minutes, 45 seconds just wanted to ask uh uh like the margin comparation is the last quarter and if I I can see even the previous year the 44:53 44 minutes, 53 seconds margin was compressed for Q4 uh so you mentioned the reason so can I assume that the margin is going to be uh 45:00 45 minutes slightly above the last the concluded quarter starting from the Q1 only. 45:08 45 minutes, 8 seconds Yes. Yes. 45:11 45 minutes, 11 seconds Okay. Sir, and sir, what is the employee count for our companies and reprovision capacity and recalation level? 45:20 45 minutes, 20 seconds Sorry, I missed a question. Can you repeat? uh employee count um as of now or if you can say it as of 31st March 45:28 45 minutes, 28 seconds 2026 and the refurbishment capacity and the utilization uh numbers utilization percentage. 45:36 45 minutes, 36 seconds Okay. Yeah. Sure. So uh the way we should look at is from a uh employee count our number is about four uh 2,148%. 45:47 45 minutes, 47 seconds uh sorry 2,148 of about 1,800 is production uh technician and also we should look at 45:55 45 minutes, 55 seconds this that as compared to last year uh which this number was at about 1200 odd 46:02 46 minutes, 2 seconds employees which is grown to about 2150 uh and there's a significant addition that has happened in the last uh uh four 46:10 46 minutes, 10 seconds to three to four months. Uh so the way we see this is that uh uh the productivity uh will will enhance 46:17 46 minutes, 17 seconds forward going forward in the coming quarters on account of u the capacities that we have put in place in terms of uh 46:25 46 minutes, 25 seconds uh the the the people as well as the infrastructure that is required to has also been enhanced so that we can uh 46:32 46 minutes, 32 seconds grow at a much faster pace but capacity wise it's not a challenge we are we are well geared up 46:40 46 minutes, 40 seconds so right now sir if you can just give a number on how much units per month you can recruit. 46:47 46 minutes, 47 seconds So uh if you look at the the number uh for the full year we have done about 7 lakh uh uh 26,000 node. So that will 46:56 46 minutes, 56 seconds give you a number of about uh uh uh about 60 61,000 W right and uh can can 47:06 47 minutes, 6 seconds can from the capacity standpoint from the 47:14 47 minutes, 14 seconds people that we have and from the space uh that we have we have taken strategic uh space positions in the in the UAE as 47:22 47 minutes, 22 seconds well as in India. In Mumbai we have we had one facility which we expanded two and in UAE we had earlier uh three now 47:31 47 minutes, 31 seconds we have eight. So uh from the capacity we are uh with the employee cost the productivity is also going to increase. 47:39 47 minutes, 39 seconds We show we have we can say that we have capacity of doing around 150k units per month. 47:45 47 minutes, 45 seconds Okay 150k units per month. Okay. Yeah. 47:50 47 minutes, 50 seconds uh and the effect of the west Asia which you uh just uh concluded there is no effect as such because we are shipping 47:59 47 minutes, 59 seconds uh through air route. So are we Mr. 100% uh the old uh laptops are uh all the 48:09 48 minutes, 9 seconds laptops are which are we are taking for refurbishment are taking from air roots only no water roots involved 0% water 48:16 48 minutes, 16 seconds root no no we are taking inward and out both are by air okay and there is no effect of west Asia 48:25 48 minutes, 25 seconds uh just just right now we have heard some some hostility in one last one two days like so uh there is no on our our 48:33 48 minutes, 33 seconds production sites yesterday. No, no, no, no. Okay. 48:37 48 minutes, 37 seconds Obviously not. I am sitting in the UA only. Uh yesterday there were uh I think some seven or eight uh missile strikes 48:45 48 minutes, 45 seconds and there is a very good uh interception rate up to the point of 99.5. 48:51 48 minutes, 51 seconds So they're intercepting all the incoming missiles and couple of missiles that are coming they're falling falling the sea or on the scal end where if you come if 49:00 49 minutes you see uh the main road in Dubai shad road uh Dubai malls Khalifa they are all 49:07 49 minutes, 7 seconds proudly standing tall there's no impact we don't see any impact of destruction whatsoever on the road on the survey at 49:14 49 minutes, 14 seconds all but yes when we read that in we see a different picture okay so why am I doing First of we have 49:22 49 minutes, 22 seconds operated sorry on the back see we have operated at normal uh in a very normal manner even even in the peak of uh the 49:30 49 minutes, 30 seconds situation right so and and we are reasonably certain that uh uh if you continue to operate the way we are we 49:39 49 minutes, 39 seconds don't see we have not seen the impact of the logistics we've not seen the impact of the production facilities we've not seen any impact on on the uh people 49:48 49 minutes, 48 seconds availability etc so I think things uh should uh should be uh looked at in that context. 49:56 49 minutes, 56 seconds So this why I'm asking this because our our use facilities lies in there. So are we planning further to uh to augment our 50:05 50 minutes, 5 seconds facilities out of UAE anywhere for for taking future in users? 50:12 50 minutes, 12 seconds See it's a very early situation. It's around 2 months 5 days old. I believe 50:18 50 minutes, 18 seconds it's my uh informed belief that situation should get normalized very soon and we don't see need for moving to 50:26 50 minutes, 26 seconds any other location or any other place. I think you will remain as as safe as ever. 50:34 50 minutes, 34 seconds Thank you very much very much sir and uh just best of luck for for next financial year and beyond further. Thank you. 50:41 50 minutes, 41 seconds Thank you. We'll take our next question from the line of Anoj Hara from Interglobe Services. Please go ahead. Uh 50:50 50 minutes, 50 seconds hi, thank you for the opportunity. Uh my question was around the average selling price since you mentioned that we've been uh that there's been a continuous 50:58 50 minutes, 58 seconds increase in the price of storage, processes and memories. Um so quarteron quarter can we see an increase in the 51:06 51 minutes, 6 seconds average selling price? Like this quarter the average selling price for laptops you mentioned was approximately 30,000. 51:12 51 minutes, 12 seconds So, so let's say in quarter one of this year or in quarter two, can we see an increase in the average selling price 51:21 51 minutes, 21 seconds uh you've seen this trajectory over the last uh three quarters in terms of the uh betterment of the realization right 51:30 51 minutes, 30 seconds so uh if you were to ask me that will trajectory continue we hope it will continue but we have to be at the same 51:37 51 minutes, 37 seconds point of time very dynamic and rising and strategy so that we continue to deliver the numbers uh and not necessarily hold on for the margin 51:46 51 minutes, 46 seconds itself. Right? But we anticipate that with the outlook that is that is there on the key components the probability of 51:54 51 minutes, 54 seconds uh a better realization is uh reasonably high. 51:59 51 minutes, 59 seconds Got it. Um and just a follow-up question. So in in the current financial year do we plan on uh adding any additional manufacturing facilities and 52:08 52 minutes, 8 seconds by the end of the year what is the approximate headcount that you see? 52:16 52 minutes, 16 seconds So at this point of time uh from the point we have taken already u sufficient uh uh space for our recession facility. 52:25 52 minutes, 25 seconds So we don't encourage the need for any further facility at this point of time. 52:30 52 minutes, 30 seconds uh in terms of uh the manpower count at the end of the year, it is uh not possible for us to uh predict uh predict 52:40 52 minutes, 40 seconds to say that at the point of the time but obviously it will be much more than what we have now 52:47 52 minutes, 47 seconds and to supplement that we continue to add uh to the marketing uh team and the marketing folk so that we can penetrate further. As we mentioned that we have 52:55 52 minutes, 55 seconds significantly built up our capacity in terms of uh uh people or technicians. So that will uh provide the color to the uh 53:03 53 minutes, 3 seconds growth for the uh immediate year. That having said uh we will be very we'll be very mindful as to how much we grow 53:11 53 minutes, 11 seconds depending on the need. uh and as we said earlier as well uh we have uh whether it's the operating capacity the shares 53:18 53 minutes, 18 seconds the people we have all of that in place uh significantly for uh the year uh the focus will be significantly on enhanced 53:27 53 minutes, 27 seconds marketing and uh the marketing role will uh will be a higher focus then there's focus required on every element but 53:34 53 minutes, 34 seconds marketing will be on a higher thing got and just a followup question so in the month of February we partnered with 53:40 53 minutes, 40 seconds Ingram and Superron uh so so from February till March and let's say till till uh April and right now can you just 53:48 53 minutes, 48 seconds can you just share the amount of revenues that we have generated from these two partners. 53:57 53 minutes, 57 seconds We are just scratching the surface with these two partners. The number that we aim to achieve will be much more than what we have done on an average basis. 54:07 54 minutes, 7 seconds Yes. 54:08 54 minutes, 8 seconds Okay. But single discussion number okay a percent discussed number 54:15 54 minutes, 15 seconds it's a very very small percent it's a minus percent I can tell you this okay okay so the so we are yet to see the growth from these partnerships let's 54:23 54 minutes, 23 seconds say in the coming years uh in the current year sorry yes yes that's correct 54:30 54 minutes, 30 seconds uh no thank you that will be also on my end thank you next question is from the line of Keith Jensen from Sing Financial. 54:40 54 minutes, 40 seconds Please go ahead. Uh hello. Good evening. Am I audible? Yes, please go ahead. 54:48 54 minutes, 48 seconds Yes. 54:49 54 minutes, 49 seconds I I wanted to ask that before this financial year, your inventory cost was lower but now your procured inventory 54:58 54 minutes, 58 seconds which you are procuring now that cost will be higher. So going forward can we assume that margins can decrease also? There are chances to fall. 55:07 55 minutes, 7 seconds No, not quite because we are buying uh the chances of prices falling are not there. There is because of the component 55:16 55 minutes, 16 seconds prices increasing. Memory is just not used in computer, it is used in EVs, it is used in uh watches, smart watches, uh smart range, lot of other places to use. 55:28 55 minutes, 28 seconds SD shortage is there. So hyperscaler expansion is happening and just remember the people who are funding the 55:36 55 minutes, 36 seconds hyperscalers are companies like Amazon, Alphabet, uh Meta uh and the likes who are sitting 55:44 55 minutes, 44 seconds on good cash file. So this is not going down and we don't see any situation and I have a good authority the information 55:52 55 minutes, 52 seconds knowledge and market insight the prices are not going to go down to 27 20 before 28th January any in any case it is not 55:59 55 minutes, 59 seconds coming back to what it used to be even if the prices will go down we are seeing a position will be a price increase only 56:08 56 minutes, 8 seconds thing it might see a correction but that is not happening before 28 but it is not going to come back to what it what it 56:15 56 minutes, 15 seconds in November of 25 for currently prices are almost up 5 to 6%. So even if they fall 20 to 20% will there be any context any margin. 56:29 56 minutes, 29 seconds Now that said you should be mindful that while our realizations are better a correction our ability to uh uh uh the 56:39 56 minutes, 39 seconds input cost has not risen that significantly. So we have been shady in terms of adding inventory but our input cost has not increased significantly. To 56:47 56 minutes, 47 seconds your concern on the risks associated with what are the prices go down will be impacted on the on the in uh uh 56:54 56 minutes, 54 seconds inventory. The answer is no. We are reasonably insulated because of because of our input cost being uh reasonably controlled. 57:04 57 minutes, 4 seconds Okay. Understood. Thank you. 57:07 57 minutes, 7 seconds Thank you. We'll take a next question from the line of Parikhit Kabra from PKJ. Please go ahead. 57:14 57 minutes, 14 seconds Hi, thank you and congratulations. Um, I want to follow up from the previous question itself. my understanding of why 57:22 57 minutes, 22 seconds okay how I'm assuming the reason we are building our inventory is because we see that one of course the demand is coming 57:30 57 minutes, 30 seconds but also I'm guessing that we expect our input uh our input inventory the raw material uh the old laptops will also 57:39 57 minutes, 39 seconds increase in price over time if we don't think that's going to happen then why would we build up our inventory so aggressively at this point 57:48 57 minutes, 48 seconds and you're right parish we are also building up inventory because our input cost will also go up and hence in this situation we are building in 57:56 57 minutes, 56 seconds anticipation before any cycle of price increase we are taking inventory position before that and that is the 58:04 58 minutes, 4 seconds reason we are able to sell at at a price yeah got it perfect and we are planning on using this ability you know the our 58:13 58 minutes, 13 seconds strength of our balance sheet to build up this inventory to expand volumes rather than necessarily expand margin that's our strategy G for this year. Is that is that a fair understanding? 58:21 58 minutes, 21 seconds Well well well well I will say right balance of both. 58:25 58 minutes, 25 seconds Okay balance of both but if this is the line this is the time when we can really expand and uh expand our proposition 58:34 58 minutes, 34 seconds exponentially. So I think if we are able to do that we should be we should do that. 58:41 58 minutes, 41 seconds Demand isn't the bottleneck in this category. The trust is and trust is exactly what we sell. 58:46 58 minutes, 46 seconds Makes sense. So let's let's play this out for another year Sharaj G but uh assuming that this cycle goes on let's 58:54 58 minutes, 54 seconds say not only till Jan 28 but even till Jan 29 um and if the growth continues at this speed and you know as as intensive 59:02 59 minutes, 2 seconds working capital intensive our business is do you foresee needing to raise capital again this year? 59:09 59 minutes, 9 seconds No uh we don't see that situation and we are obviously the inventory will not go 59:16 59 minutes, 16 seconds to meaning uh at very we we'll continue to monitor our inventory also uh we say 59:24 59 minutes, 24 seconds by 28 29 we we do not see any need for any capital inclusion in the company and 59:31 59 minutes, 31 seconds we will be able to manage on the basis of this and on the basis of cash across perfect also be mindful of the fact that 59:39 59 minutes, 39 seconds I want to put it also be mindful of the fact that the equity base is reasonably comfortable right 59:46 59 minutes, 46 seconds that having said and on the back of that our debt level is is at about $300 so there's reasonable headroom available uh 59:54 59 minutes, 54 seconds for for there being no uh real visibility in terms of need for equity as we stand 1:00:01 1 hour, 1 second the last question I had was the data days as someone had raised earlier had risen to about 40 days now and uh you explained that there are new 1:00:10 1 hour, 10 seconds distributors who require certain level of credit. Uh but should we assume that it will now remain stable at 40 45 days or is there a chance that this can get more? 1:00:21 1 hour, 21 seconds Now we intend to maintain them at these levels. We do not want to increase that any further. Uh and the the reason the 1:00:30 1 hour, 30 seconds why data days are because we are going in a territory which was here to here to four to only the domain of brand new dish. 1:00:38 1 hour, 38 seconds Perfect. 1:00:42 1 hour, 42 seconds Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Shhat Kandelwal for closing comments. Over to you. 1:00:51 1 hour, 51 seconds Yeah, thank you. Thank you all for joining this call. Uh so we are very excited. The journey that we started 1:00:58 1 hour, 58 seconds last year continues to grow and the tailwinds are now available. These changes are permanent, structural and fundamental. These are it's a new 1:01:07 1 hour, 1 minute, 7 seconds category creation that with all audacity we started not only in India but entire international market insulating us from 1:01:15 1 hour, 1 minute, 15 seconds country risk channel risk and other risk is finding greater acceptance. The proposition of our equal to new 1:01:21 1 hour, 1 minute, 21 seconds computers with warranty is making is is an unbeatable proposition and day by day 1:01:28 1 hour, 1 minute, 28 seconds we intend to capitalize on the on this demand isn't the bottleneck. trust is and we are solving the trust and trust 1:01:36 1 hour, 1 minute, 36 seconds premium is the high margin giver that that's all I can say uh so und sits in a category where the 1:01:43 1 hour, 1 minute, 43 seconds direction is unambiguous and the winners are the ones who solve trust and we intend to solve the trust thank you all for joining this call 1:01:51 1 hour, 1 minute, 51 seconds thank you members of the management team on behalf of G&G electronics limited that concludes this conference thank you for joining us and you may now 1:01:59 1 hour, 1 minute, 59 seconds disconnect your lines